Skip to main content
Find a Lawyer

Utah Code Title 31A. Insurance Code § 31A-22-1001. Obligation to write workers' compensation insurance

Current as of January 01, 2025 | Updated by Findlaw Staff

(1) As used in this section, “Workers' Compensation Fund” means the mutual corporation that is the successor to the quasi-public corporation created under Chapter 33, Workers' Compensation Fund, which is the chapter repealed by Laws of Utah 2017, Chapter 363.

(2) The Workers' Compensation Fund shall write all workers' compensation insurance for which application is made to the Workers' Compensation Fund until the time designated by the commissioner, but no later than December 31, 2020. As a condition of the rights granted under this Subsection (2), the Workers' Compensation Fund agrees to provide notice by no later than July 1, 2018, if the Workers' Compensation Fund does not intend to seek a contract under Subsection (3).

(3)(a) Before entering the contract required under Subsection (3)(b), the commissioner shall work with the Workers' Compensation Fund and other workers' compensation insurance carriers to determine what constitutes the residual market within this state. After consulting with the Workers' Compensation Fund and other workers' compensation insurance carriers, the commissioner shall make the final decision of how to define the residual market. As part of the process of determining the residual market, the commissioner may make reasonable requests of data from the Workers' Compensation Fund and other workers' compensation insurance carriers.

(b) Beginning no later than January 1, 2021, the commissioner shall enter into a contract with a workers' compensation insurance carrier to write all workers' compensation insurance for which application is made to the workers' compensation insurance carrier.

(c) The commissioner shall comply with Title 63G, Chapter 6a, Utah Procurement Code, in selecting the workers' compensation insurance carrier described in Subsection (3)(b). Criteria the commissioner may consider include:

(i) the rating of the workers' compensation insurance carrier by a nationally recognized statistical ratings organization;

(ii) the financial size category of the workers' compensation insurance carrier as determined by a nationally recognized statistical ratings organization;

(iii) the length of time the workers' compensation insurance carrier has held a certificate of authority and has been active in the Utah workers' compensation insurance market; and

(iv) the workers' compensation insurance carrier's demonstration of the intent to provide statewide:

(A) safety consultation, employer training ability, and accident prevention expertise;

(B) claims handling, medical case management, rehabilitation, cost containment, and employee return to work capabilities; and

(C) physical offices and electronic access for the convenience of Utah employers and employees.

(d) A contract entered into under this Subsection (3) shall:

(i) notwithstanding Section 63G-6a-1204, be for a term of at least 10 years;

(ii) provide for an option to renew the contract;

(iii) require a workers' compensation insurance carrier with whom the commissioner contracts to provide notice that the workers' compensation carrier will not seek to renew the contract at least three years before the end of the contract; and

(iv) contain other terms necessary to ensure that the workers' compensation insurance carrier awarded the contract will provide workers' compensation insurance to the residual market.

(4) The commissioner shall annually submit a written report in accordance with Section 68-3-14 to the Business and Labor Interim Committee by no later than October 1 that:

(a) describes the status of the commissioner's activities under Subsection (3); and

(b) the need, if any, for legislation to address the residual market.

Previous Part of Code Next Part of Code
Back to Chapter List

Cite this article: FindLaw.com - Utah Code Title 31A. Insurance Code § 31A-22-1001. Obligation to write workers' compensation insurance - last updated January 01, 2025 | https://codes.findlaw.com/ut/title-31a-insurance-code/ut-code-sect-31a-22-1001/

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.

Was this helpful?

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw’s Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About The Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to Find an Attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

Copied to clipboard